The Swiss Committee for Economic Affairs and Taxes of the National Council (CER-N) has backed the Foreign Account Tax Compliance Act (FATCA) Model 2 agreement (IGA) with the US.
The IGA has already been adopted by the Swiss Council of States.
However, the deal did not "arouse the enthusiasm" of the committee, the committee said in its statement.
The unilateral US FATCA legislation is set to enter into force on January 1, 2014. It is therefore very much in Switzerland’s interests to adopt the IGA with the US, to ensure that the Confederation reaps the benefits of certain exemptions provided for in the accord, the committee argued in defence of its decision.
However, opponents of the accord warned that the legislation impinges on Swiss sovereignty. Others called for an amendment to be introduced, providing that the Federal Council is to re-open negotiations with the US, in the event that the automatic exchange of information becomes the international standard, and to move to a Model 1 IGA.